Radcom (NASDAQ:RDCM) Issues Earnings Results

Radcom (NASDAQ:RDCM) released its earnings results on Wednesday. The technology company reported ($0.09) EPS for the quarter, missing the consensus estimate of $0.24 by ($0.33), FiscalAI reports. Radcom had a return on equity of 6.56% and a net margin of 10.47%.The company had revenue of $11.76 million during the quarter, compared to the consensus estimate of $15.57 million.

Here are the key takeaways from Radcom’s conference call:

• Second-quarter revenue fell sharply to $11.8 million, down 33.4% year over year, resulting in a non-GAAP operating loss of $2.2 million and a $1.5 million net loss. Management attributed the decline primarily to delayed customer expansion deployments.
• Several Tier 1 customers postponed private-cloud and on-premise expansion projects because server infrastructure costs increased substantially. RADCOM said the projects have been delayed rather than canceled, but expects deployment activity to normalize no earlier than the first quarter of 2027, with some activity potentially resuming in the fourth quarter of 2026.
• Management reaffirmed its revised 2026 revenue outlook of $57 million-$63 million, expects to remain non-GAAP profitable for the year, and is targeting positive free cash flow in the second half. It also expects double-digit revenue growth in 2027 as deferred deployments return.
• RADCOM reported three post-quarter wins, including a multi-year European contract with CETIN Networks, a competitive Asia-Pacific Tier 1 win, and an existing-customer renewal. The company said its pipeline remains healthy, with multiple opportunities advancing from evaluations to commercial discussions.
• With $109.7 million in cash and no debt, RADCOM plans to establish a $20 million-$25 million share repurchase program. The company also launched its Analytics Designer Module and continues investing in AI products, including RADCOM Neura, to expand its installed base and strategic partnerships.

Radcom Stock Up 0.6%

Shares of NASDAQ RDCM traded up $0.06 during trading on Friday, reaching $10.22. 32,581 shares of the company traded hands, compared to its average volume of 150,450. The firm has a 50 day simple moving average of $12.67 and a 200-day simple moving average of $12.87. Radcom has a 52-week low of $9.40 and a 52-week high of $16.74. The stock has a market capitalization of $171.08 million, a PE ratio of 24.41 and a beta of 0.74.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. State of Tennessee Department of Treasury grew its position in Radcom by 37.5% in the 4th quarter. State of Tennessee Department of Treasury now owns 20,909 shares of the technology company’s stock worth $262,000 after purchasing an additional 5,700 shares during the period. Lynrock Lake LP boosted its stake in shares of Radcom by 7.7% in the 4th quarter. Lynrock Lake LP now owns 2,441,775 shares of the technology company’s stock worth $31,938,000 after buying an additional 175,094 shares during the last quarter. XTX Topco Ltd bought a new stake in shares of Radcom in the fourth quarter worth $196,000. Millennium Management LLC increased its position in Radcom by 22.0% during the fourth quarter. Millennium Management LLC now owns 80,693 shares of the technology company’s stock valued at $1,055,000 after acquiring an additional 14,572 shares during the last quarter. Finally, Trexquant Investment LP increased its position in Radcom by 19.9% during the fourth quarter. Trexquant Investment LP now owns 55,896 shares of the technology company’s stock valued at $731,000 after acquiring an additional 9,271 shares during the last quarter. Institutional investors own 48.32% of the company’s stock.

Analysts Set New Price Targets

Several brokerages recently commented on RDCM. Weiss Ratings raised shares of Radcom from a “hold (c)” rating to a “hold (c+)” rating in a research report on Wednesday. Wall Street Zen cut shares of Radcom from a “buy” rating to a “hold” rating in a report on Saturday, August 1st. Needham & Company LLC decreased their price objective on shares of Radcom from $18.00 to $14.00 and set a “buy” rating for the company in a report on Wednesday. Finally, Zacks Research cut Radcom from a “hold” rating to a “strong sell” rating in a research report on Wednesday. One equities research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $14.00.

About Radcom

Radcom Ltd. (NASDAQ: RDCM) is a provider of cloud-based service assurance and analytics solutions designed to help communications service providers monitor and optimize the performance of their networks. Its flagship product, RADCOM ACE, delivers real-time visibility into service quality, subscriber experience and network resource utilization across traditional and virtualized architectures. By combining packet-level data collection with advanced analytics and machine-learning algorithms, Radcom enables carriers to detect, troubleshoot and resolve network and service issues before they impact end users.

Founded in 1991 and headquartered in Tel Aviv, Israel, Radcom has evolved from an early vendor of network testing equipment into a specialist in end-to-end assurance for voice, data, video and next-generation services.